US Nonfarm payrolls rose by 199000 in December much below the forecast of 426000 (Positive for Euro). The unemployment dropped to 3.9% in Dec vs an estimated 4.1% (Slightly positive for US dollar). Annual wage inflation came at 4.7%, compared to a forecast of 4.1% (Slightly positive for the US dollar). Overall jobs data is positive for Euro.
Technical-
Any breach below 1.12700 confirms intraday bearishness. A dip till /1.1230/1.1180 is possible.
The immediate resistance to be watched is 1.13250; any violation above will take the pair to 1.1380/1.1400/1.1435.
Indicators (1-hour)
Directional movement index –Neutral
CCI (50) – Bearish
It is good to buy on dips around 1.1300 with SL around 1.1260 for a TP of 1.1380/1.1435.
